Almost 3 million homeowners faced foreclosure last year and so far government programs have helped less than 500,000.

The goal was eight times that many.

"If this was the goal, absent some unexpected or unanticipated change in circumstances, it will not be met," said Neil Barosky the special inspector assigned to oversee the Troubled Asset Relief Program,

So the Obama administration announced a new plan using 14 billion from bank bailout funds to encourage banks to refinance or reduce loans for borrowers who owe more than their home is worth.

"For the investor, it would be cheaper to write down a portion of it and get them into an affordable home, than hold it on the balance sheet," said the FHA's David Stevens.

The plan also offers cheaper payments for up to six months to homeowners who've lost their jobs

Will it work?

"He's only helping those who are up to date on their payments. So many families are behind in the mortgage, face ballooning interest rates and so forth -- they really can't helped," said Peter Morici a professor at the University of Maryland.

Critics say it's not fair, a bailout for people who bought more home than they could afford.

But supporters argue at this point we're all in the same boat.

"I might not be the one who made the holes in the bottom of the boat, but if we don't plug those holes we all sink a little bit," said Julia Gordon with the Center for Responsible Lending.

The administration hopes these changes will help meet their goal of saving three to four million homeowners from foreclosure.